Yoii Inc., a FinTech company based in Japan, has successfully completed a Series A funding round, securing approximately $5.5 million to further develop its innovative revenue-based financing (RBF) platform, “Yoii Fuel.” This funding round, led by Emellience Partners, included participation from notable investors such as Itochu Technology Ventures, FFG Venture Business Partners, and five existing backers, bringing Yoii’s total funding to $9.5 million.
Yoii’s mission is to introduce new fundraising methods in Japan that provide viable alternatives to traditional debt and equity financing, aiming to support the growth of startups in the region. The company’s strategic focus on RBF as a flexible funding solution addresses the high barriers that early-stage startups often encounter with conventional funding methods.
The Japanese government’s push towards “New Capitalism” underscores the importance of nurturing startups that contribute to addressing social issues and fostering a sustainable economic society. While this initiative is crucial, the growth rate of startups in Japan and the number of unicorn companies lag behind figures in the US and Europe.
Traditional funding avenues, such as equity and debt financing, can pose challenges for early-stage startups. Yoii’s innovative approach through Yoii Fuel allows companies to secure growth funds from future revenues, presenting a flexible and accessible alternative. The platform facilitates an entirely online application process, eliminating the need for share dilution, personal guarantees, or collateral.
Key features of Yoii Fuel include an efficient and speedy assessment process, simplified procedures requiring minimal financial data, and seamless integration with external services for automatic financial data submission.
Looking ahead, Yoii plans to strengthen its product promotion within Japan while simultaneously setting its sights on expanding into the broader Asian market. This expansion strategy involves conducting international research, refining risk models, and advancing recruitment efforts.
Established in April 2021, Yoii aims to redefine fundraising for entrepreneurial ventures by providing a novel option through RBF. The company’s commitment is rooted in supporting the growth of startups and enhancing asset liquidity, contributing to the broader landscape of FinTech innovation in the region.